"Mobile Wallet" is getting into life

In the supermarket, you don't need to pull out your wallet when you buy a bill, you can easily pay for it by dialling the phone, and you don't panic when you take the subway. If you tap the phone, you can enter the gate. This is not a scene in a science fiction movie. But the upcoming reality. At the 2012 China Mobile Global Developers Conference held in Guangzhou last week, China Mobile announced in a high-profile manner the opening of SIM card functions based on NFC (Near Field Communication) technology, and promised to invest nearly 10 billion yuan in promoting the development of the NFC industry chain next year. Work with multi-partners to promote the use of "mobile wallet" technology to users.

Coincidentally, just before China Mobile issued the product, China Unicom also “just happened to” announce that China Merchants Bank and China Merchants Bank jointly promoted mobile payment. In addition to this, China Telecom and numerous third-party payment companies have successively entered the mobile payment market. For a time, "Mobile Wallet" has become the eye-catcher of mobile Internet-related businesses, and it has even been recognized as the next killer application in the mobile Internet industry.

Operators are fully committed to accelerating their deployment. This is not a quiet battle. Both China Mobile and China Unicom, and even China Telecom, have invested heavily in the NFC-based mobile payment market. According to the news provided by China Unicom, the mobile payment products it launched in cooperation with China Merchants Bank can be loaded into the special mobile phone USIM card through the designated Unicom business office, thereby realizing the combination of bank card functions and mobile phone functions. "You can do a variety of purchases directly by swiping your phone. In order to allow the commercial scale to expand as quickly as possible, China Unicom announced that approximately 1.5 million non-connected financial POS terminals were deployed by the end of this year. In addition to China Merchants Bank, China Unicom and Eastern Airlines have also conducted related cooperation to provide users with relevant services. One-stop banking, communications, and aviation-related mobile payment services.

Compared with China Unicom, China Mobile’s plan is even more inflated. According to Shen Hongqun, deputy general manager of China Mobile's data department, China Mobile has already joined hands with UnionPay to promote the construction of NFC acceptance environment. By the end of 2012, the POS will be upgraded to a level of 1.2 million units. “In the future, we will continue to increase cooperation with financial, transportation, logistics and other industrial units. The NFC acceptance terminal will reach a scale of tens of millions of meters and match the needs of users.” Shen Hongqun said that the current overseas development of NFC technology is very rapid. By the end of next year, the number of mobile phones supporting NFC technology will increase from 30 million in 2011 to 100 million. Therefore, China Mobile hopes to work with more partners to grasp the business opportunities of NFC mobile payment. According to the plan, China Mobile will invest nearly 10 billion in 2013 to promote the development of the NFC industry chain, and it is expected to sell tens of millions of NFC mobile phone terminals.

Even China Telecom, which seems to be low-key, has already been deployed in the field of mobile payment. It is understood that China Mobile's mobile payment application service "wing payment" has now been piloted in many provinces and cities across the country. To this end, China Telecom has also established a professional mobile payment company to strengthen cooperation with the banking system. According to Gao Hongliang, general manager of China Telecom Tianyi E-commerce Co., Ltd., in the first half of this year alone, the cumulative transaction volume paid by China Telecom has reached 16.96 billion yuan, which is more than the total transaction volume of the previous year. It will be 2.5 times that of 2011.

Why are carriers rushing to the mobile payment business? The huge market potential is of course the number one reason. Statistics from relevant institutions show that the size of China's mobile payment market is expected to reach 23.5 billion yuan by 2013, with an annual growth rate of more than 100%. As the number of mobile phone users in China has increased year by year, the number of mobile payment users has also increased. China's mobile payment service volume will be considerable. According to the research of the Ministry of Industry and Information Technology and China Mobile, the total size of China's mobile payment industry chain will exceed RMB 150 billion by 2013 and will maintain an annual growth rate of around 40% in the next few years.

Second, the problem of technical standards has finally been solved. It is understood that the current national standards for mobile payment SIM cards have been formulated and mobile payment standards will be introduced soon. "This means that operators are no longer having policy obstacles in pushing mobile payment services, so we will now see the three major operators rush to deploy this market." Zhang Xing, analyst at Rational AB, said mobile payment and Currently, the mobile internet and IoT services that are actively developed by operators have a very good integration and are tightly integrated with the evolving e-commerce. In the traditional Internet era, operators have not been able to focus on the business opportunities in the payment market and certainly do not want to miss the mobile Internet. .

The third-party payment pattern was initially set. However, while operators were making efforts in the field of mobile payment, third-party payment companies that have tasted the sweetness of the payment market on the traditional Internet have also started relevant actions. Many companies represented by Alipay, Quick Cash, etc. Recently, various new products have been introduced frequently and it is intended to gain a share in this new 100 billion business opportunity. Different from operators' implementation of NFC technology, third-party payment companies have taken a different approach to the realization of the functions of mobile wallets: products like the foreign Square card readers have become the main products of third-party payment companies in mobile wallets. And the main target of their products and services is not ordinary consumers. Excavating the commercial market has become their primary goal for the Nuggets.

According to public information, Quick Cash was the first in China to launch a Square-type mobile phone swipe card product, “Quick Brush”, last year. However, unlike the card readers of other companies such as Lakala, the “quick brush” has been positioned for commercial use from the very beginning, and has not been sold to individuals. This has caused a lot of heat at the time. Earlier this year, Quick Cash gave its first answer sheet: 5000 brush heads covering four major insurance companies. The latest news is that so far, "Quick Brush" has quietly covered more than 10 industries including air tickets, travel, insurance, direct sales, and logistics. The number of merchants has successfully exceeded 1,000.

Another third-party payment company remittance has recently launched its mobile payment card reader POS mini. This product expands from the development process to users to meet the payment application needs of small and medium micro-businesses, and tries to use the POS mini as the money manager's consolidated account. Terminal extension of the service management platform provides a complete set of back-office account management system solutions for small and medium-sized micro-businesses. In this case, Analyst Zhang Meng, a senior analyst at Analysys International, stated that the single transaction volume in the commercial mobile payment market is much larger than that of individuals. "Such as insurance collections, a sum of at least a few thousand dollars, and this market is ready-made. Whoever took the lead in this demand, who will be the first to succeed."

In addition to the commercial market, the use of pre-existing user advantages in the payment market has also tested the development capabilities of mobile Internet applications. Alipay, Tenpay, such as the "big" in the individual market, the development of the same fierce. Recently, Tenpay Communications announced that with its third-party payment platform, users can easily pay for water and electricity bills covering 56 major cities across the country through the Internet or using mobile phone Tenpay mobile client, with a total of 302 living expenses. Meet the daily needs of users, and immediate arrival, free of charge. In this regard, the industry sources said that compared to the platform advantage of third-party payment companies, in the practical application of mobile wallets, the single-channel service advantage of operators or banks is not obvious. "Especially the POS-end transformation, although the cost of POS technology using NFC technology has been reduced, but it needs a long time to recommend popularization, compared to the two-dimensional code technology such as Alipay. It's more convenient to use, so it's hard to know who's going to win this battle in the mobile payment market."

In an interview with Nanfang Daily, the relevant person in charge of Lacala also stated: “Now that the mobile payment market is developing rapidly, many of its peers do not fully understand what is meant by public-appropriate payments and do not really grasp the needs of users. Free and safe payment methods may be what users need most."